Economics SL/HL

Description

Tutors: 

Johannes Henkel, Michail Thunert

1) Economics in the IBDP: 

Economics is an exciting, dynamic subject that allows students to develop an understanding of the complexities and interdependence of economic activities in a rapidly changing world. At the heart of economic theory is the problem of scarcity. While the world’s population has unlimited needs and wants, there are limited resources to satisfy these needs and wants. As a result of this scarcity, choices have to be made. The economics course, at both SL and HL, uses economic theories to examine the ways in which these choices are made:

• at the level of producers and consumers in individual markets (microeconomics) • at the level of the government and the national economy (macroeconomics)      • at an international level where countries are becoming increasingly interdependent through international trade and the movement of labour and capital (the global economy).

Economics Aims:

The aims of the economics course at SL and HL are to enable students to:

• 1. develop a critical understanding of a range of economic theories, models, ideas and tools in the areas of microeconomics, macroeconomics and the global economy
  2. apply economic theories, models, ideas and tools and analyse economic data to understand and engage with real-world economic issues and problems facing individuals and societies
  3. develop a conceptual understanding of individuals’ and societies’ economic choices, interactions, challenges and consequences of economic decision-making.

2) Syllabus Outline: 

Unit 1: Introduction to economics 

• • 1.1 What is economics?
  • 1.2 How do economists approach the world

Unit 2: Microeconomics 

• • 2.1 Demand (includes HL only sub-topics)
  • 2.2 Supply (includes HL only sub-topics)
  • 2.3 Competitive market equilibrium
  • 2.4 Critique of the maximising behaviour of consumers and producers
  • 2.5 Elasticity of demand (includes HL only sub-topics)
  • 2.6 Elasticity of supply (includes HL only sub-topics)
  • 2.7 Role of government in microeconomics (includes HL only calculation)
  • 2.8 Market failure—externalities and common pool or common access resources (includes HL only calculation)
  • 2.9 Market failure—public goods
  • 2.10 Market failure—asymmetric information (HL only)
  • 2.11 Market failure—market power (HL only)
  • 2.12 The market’s inability to achieve equity (HL only)

Unit 3: Macroeconomics 

• • 3.1 Measuring economic activity and illustrating its variations
  • 3.2 Variations in economic activity—aggregate demand and aggregate supply
  • 3.3 Macroeconomic objectives (includes HL only calculation)
  • 3.4 Economics of inequality and poverty (includes HL only calculation)
  • 3.5 Demand management (demand side policies)—monetary policy (includes HL only sub-topics)
  • 3.6 Demand management—fiscal policy (includes HL only sub-topics)
  • 3.7 Supply-side policies

Unit 4: The global economy 

• • 4.1 Benefits of international trade (includes HL only subtopics and calculation)
  • 4.2 Types of trade protection (includes HL only calculations)
  • 4.3 Arguments for and against trade control/protection
  • 4.4 Economic integration
  • 4.5 Exchange rates (includes HL only sub-topic)
  • 4.6 Balance of payments (includes HL only sub-topics)
  • 4.7 Sustainable development (includes HL only sub-topic)
  • 4.8 Measuring development
  • 4.9 Barriers to economic growth and/or economic development
  • 4.10 Economic growth and/or economic development strategies

Unit 5: Internal Assessment – Portfolio of three commentaries 

3) Assessment Outline: 

SL: 

• • Paper 1: Extended Response – one question from a choice of three (75 minutes)
  • Paper 2: Data Response paper – one question from a choice of two (105 minutes)
  • Internal Assessment: Field Work – 3 Commentaries

HL 

• • Paper 1: Extended Response – one question from a choice of three (75 minutes)
  • Paper 2: Data Response – one question from a choice of two (105 minutes)
  • Paper 3: Policy Paper – two compulsory questions (105 minutes)
  • Internal Assessment: Field Work – 3 Commentaries

For more information check out the: IB Economics Guide